Regulatory Alerts2026-01-01
Decision on Governance Arrangements in Credit Institutions
The Council of the Central Bank of Montenegro has issued this decision to establish detailed governance arrangements for credit institutions, mandating clear organizational structures, defined risk appetites, and independent control functions. It requires institutions to implement comprehensive risk culture policies, strict codes of ethics, and robust conflict-of-interest prevention measures while ensuring adequate resources and independence for risk, compliance, and internal audit functions. The decision further outlines specific operational mandates for supervisory and management boards, including continuous oversight of risk profiles, mandatory stress testing, and transparent reporting mechanisms to align institutional activities with regulatory standards and strategic objectives.